People wear face masks when they walk through Herald Square in New York City on January 8, 2021.
Angela Weiss | AFP | Getty Images
Macy’s reported its first quarterly profit in a year on Tuesday as its efforts to reduce inventory during the holiday quarter and rely less on deep discounting paid off.
The company said the year 2021 would be a year of recovery and rebuilding as it pulls back the path of the losses it suffered during the pandemic. It offers a prospect for earnings and sales that are expected to continue during the spring, according to ongoing pandemic barriers, with momentum increasing in the middle of 2021.
Macy’s shares rose more than 1% in pre-trading.
Here’s how the company ended the fourth quarter on January 30, compared to what analysts had expected, based on a poll by Refinitiv:
- Earnings per share: 80 cents, adjusted to 12 cents, expected
- Revenue: $ 6.78 billion versus $ 6.5 billion, expected
Net income for the quarter ended January 30 a year earlier had dropped to $ 160 million, or 50 cents per share, from $ 340 million, or $ 1.09 per share. If the cost is not one-time, the company earns 80 cents a share, better than the twelve cents analysts expect.
Sales fell to $ 6.78 billion from $ 8.34 billion a year ago. It came in better than the $ 6.5 billion analysts had expected.
Macy’s said sales in the same store on a plus-and-licensed basis fell 17.1% from the 2019 level. According to Refinitiv data, analysts are asking for a 21.3% drop.
E-commerce sales have increased by 21% in the last period.
Macy’s said it expects its annual online sales to skyrocket $ 10 billion within the next three years.
CEO Jeff Gennette noted that the company sees the most power in home, beauty, jewelry and watches during the quarter.
With a view to fiscal 2021, Macy’s expects sales to fall in the range of $ 19.75 billion to $ 20.75 billion. Analysts have claimed an annual revenue of $ 20.13 billion.
He expects adjusted earnings per share to fall within 40 cents to 90 cents. Analysts have forecast adjusted earnings of 77 cents per share.
Read the full press release and material from Macy’s here.
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